The Financial Conduct Authority (FCA) – Consultation on pensions, comparing the value for money of pension products and services for members
10 July 2020
The Financial Conduct Authority (FCA) are consulting on how Independent Governance Committees (IGCs) and Governance Advisory Arrangements (GAAs) compare the value for money (VfM) of pension products and services and promote the best value for pension scheme members.
The FCA want to make it simpler for Independent Governance Committees (IGCs) and Governance Advisory Arrangements (GAAs) to compare the value for money (VfM) of pension products and services.
The IGC currently oversee the VfM of workplace personal pensions provided by firms like life insurers and some self-invested personal pension (SIPP) operators. They look to provide independent oversight of workplace personal pensions in accumulation (building up pension savings) and of the investment pathway solutions that will have to be offered from 1 February 2021. They also act for consumers who are less engaged with their pension savings.
The FCA advise that the consultation would be relevant to:
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IGCs, GAAs and their advisers
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All firms that intend to provide pathway solutions and that provide FCA-regulated workplace pension products
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Third party firms that provide GAAs
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Workplace pension scheme members and their employers
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Consumer representative groups
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Trade bodies representing financial services firms
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Charities and other organisations with an interest in the ageing population and financial services
The proposal of this consultation stems from the FCA’s and The Pensions Regulator’s (TPR) commitments for regulating pensions and retirement income. One aim of this strategy is to promote a consistent approach to assessing VfM across the pensions industry. The FCA also want to avoid firms or IGCs undertaking work which adds little consumer value, but which adds to consumers’ costs.
Reponses to this consultation are now open and are required to be submitted by 24 September 2020. Reponses will need to be submitted via email to [email protected] or through an online response.
The FCA have advised that you should not submit a reponse via the post at this time.
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CIPP comment If you would like to raise any views or discuss this consultation with the CIPP policy and research team, please email us at [email protected] where we will welcome your views.
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